TORONTO – Canwest Global Communications’ subsidiary CW Media is selling its stake in Score Media Inc., parent company of The Score television network.
The companies announced Tuesday that CW Media will participate in Score Media’s issuer bid and sign a “lock-up agreement” to sell just over 16.5 million of its Class A shares at $0.40 per share.
Score Media will purchase up to 18 million of its Class A subordinate voting shares, or an aggregate amount of up to $7.2 million, for cancellation. If the offer is fully taken up, it will represent approximately 18% of Score Media’s issued and outstanding Class A shares.
"The issuer bid reflects Score Media’s continued commitment to enhancing shareholder value and positions us to continue our growth in the competitive media space," said chairman and CEO John Levy, in the Score Media press release. "We are pleased that our strong balance sheet allows us to continue to invest in the company while returning value to our shareholders."
In addition, Canwest and CW Media hired Genuity Capital Markets as an agent to sell up to nine million Class A shares by way of private placement to accredited investors. The private placement could result in gross proceeds of approximately $3.6 million.
Following the issuer bid, CW Media said that it would convert its outstanding 4,434 special voting shares of Score Media into Class A shares for sale in the open market.
CW Media, which is a partnership with Goldman Sachs, owns and operates 13 specialty television channels, including Showcase, Slice, History Television, HGTV Canada and Food Network Canada.
